international business

Contents

List of Graphs ……………………………………………………………………………………...…i

Chapter 1: Introduction.........................................................................................................................11.1 Genesis......................................................................................................................................11.2 Nature and scope of project.......................................................................................................21.3 Background of the place of work..............................................................................................31.4 Process Capabilities...................................................................................................................51.5 Products.....................................................................................................................................61.6 Product description....................................................................................................................6Chapter 2: Industry overview.............................................................................................................112.1 What are Lubricants................................................................................................................11

2.1.1 Industry Overview............................................................................................................112.1.2 Lubricant Industry Segmentation.....................................................................................12

2.2 Specialty Chemicals................................................................................................................132.2.1 Innovations plus volumes.................................................................................................142.2.2 MNC’s captive audience..................................................................................................142.2.3 Markets in speciality chemicals.......................................................................................152.2.4 The staple areas................................................................................................................17

Chapter 3: International Business at KAPL.......................................................................................183.1 International Business at KAPL..............................................................................................183.2 Supply chain at KAPL.............................................................................................................203.3 E- Business at KAPL...............................................................................................................213.4 ‘5S’ in KAPL...........................................................................................................................26Chapter 4: Research Methodology.....................................................................................................324.1 Research methodology............................................................................................................32

4.1.1 Research design................................................................................................................324.2 Data analysis............................................................................................................................34

4.2.1 Chi-Square Test................................................................................................................43Chapter 5: Conclusion........................................................................................................................445.1 Limitations...............................................................................................................................445.2 Conclusion...............................................................................................................................445.3 Learning Experiences from the project...................................................................................45References..........................................................................................................................................46

Inde

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International Marketing

Chapter 1: Introduction

1.1 GenesisThe boundary-less business world of today has seen organizations operating from multiple

locations across the globe. With the extension of area of operations, comes the challenge of

managing business operations in multiple countries. International marketing involves

coordinating the firm’s marketing activities in more than one nation. This report examines

the various tasks involved in international marketing of KAPL’s products discusses the

challenges present therein.

Chapter 1 of this report tells about the overview of the Krishna Antioxidants Pvt.

Ltd. Its products literature, process capabilities and organization structure.

Chapter 2 of this report explains the nature of industry i.e. Lubricant and specialty

chemicals in which company deals. It also reveals industry segmentation and

international sale volume of speciality chemicals.

Chapter 3 gives the idea about how exactly the process of International business

happens in the KAPL.

Chapter 4 explains the methodology that we adopted while conducting marketing

research. It includes,

1. Collection of data

2. Create a database according to the company standard.

3. Contacting the customer

4. Customer satisfaction survey

Chapter 5 gives the data analysis of the research

Chapter 6 includes conclusion and learning from the project.

Dr. V. N. Bedekar Institute of Management Studies 1


1.2 Nature and scope of projectThe project work is pursued as a part of MMS curriculum. It is undertaken as a traineeship

at Krishna Antioxidants Pvt. Ltd. The project is done under expert supervision and

guidance of Mr. Samir Gupta. The project is about the International operations of the

company and also efforts done to make improvements in the customer acquisition process

for better results.

At Krishna Antioxidants Pvt. Ltd., initially we were imparted process and product

knowledge. We were given sufficient time to know about the products, and all other

business activities. The main aim was to develop business in international market and for

this different ways were tried and implemented. The project dealt with various fields like,

oilfield, speciality chemicals etc.

Thus it gave me the opportunity to learn about the all the products related to the various

industries and its international market. Our task was divided into following phases;

1. Product Knowledge: This included theoretical knowledge about the products which

needed to be marketed.

2. Creating Database: This included implementation of knowledge imparted to us and test

of our management skills.

3. Customer satisfaction survey: This includes, customers view about the company and its

product. From this survey we understand that they are keen to retain business relationship

with us in future.

4. Implementation at corporate level: This included the implementation of all the

Knowledge and ways learnt for the pitching and extracting business out of the corporate.

With the end of 7 weeks every phase was completed and it gave us the real experience of the

corporate world.

This project summarizes the work and experience gain at Krishna Antioxidants Pvt. Ltd.

And brief overview of international operation of the business.

Objective

To identify the potential customers of the company across the world in order to

expand the international business and find whether existing customers are satisfied

with the KAPL’s service or not.



1.3 Background of the place of work

Krishna Antioxidants Pvt. Ltd.1

Founded and incorporated in 1991, Krishna Antioxidants Pvt. Ltd. has evolved to be one

of the leading privately owned specialty chemicals producers in India.

Over the last decade, company has developed core strength in producing a comprehensive range of

specialty chemicals, sold under the CRISTOLTM trade name, that deliver Quality, Reliability &

Performance. These products are continuously updated to meet the requirements of their customers

and the latest industry standards.

Company also provides technical services to tailor make their products to meet specific

requirements of customers.

Company’s range of performance specialty chemicals is complemented by its contract

manufacturing business; all backed by innovative approach to the development and production of

new specialty chemicals.

Manufacturing site of company is located about 300 kms. from Mumbai at Chiplun, Dist. Ratnagiri,

Maharashtra. The site can be conveniently reached by road or by express rail from Mumbai.

Quality policy

Krishna Antioxidants Pvt. Ltd. is an ISO 9001-2000 company with an uncompromising attitude

towards quality of chemicals which they produce and the service which they provide to their

customers. Company’s quality systems are controlled by a professionally qualified and experienced

management team that ensures that quality standards are met with at all times. Company has a

dedicated analytical laboratory attached to production facility for all R&D activities, quality

assurance, quality control, production control and compliance requirements.

As per the company’s Quality Policy, company has a sacrosanct commitment to achieve full

customer satisfaction. They achieve it by ensuring that everyone understands and meets the

customer requirements.

1 www.cristol.co.in



Company has an intensive training programme because they never lose sight of the fact that

"Quality is a race without a finishing line".

1.3.1 Organization Structure



1.4 Process Capabilities

Their plants are equipped with polyvalent facilities to carry out most unit processes such as:

Alkylation Ethoxilation

Blending Oxidation

Chloro-sulphonation Phosphitation

Chilling Polymerization

Compounding Reduction

Condensation Sulphation

Distillation Sulphonation

Drying Neutralization

Epoxidation Nitration

Esterification Washing

Contract Manufacture

They successfully executed several projects of contract manufacture for a range of speciality

chemicals, which have been undertaken both for major multinational chemical companies

and for smaller/medium companies seeking independent, third party confidential contract

manufacture. These businesses are conducted under terms of strict confidentiality.



1.5 Products

Industry Classification

Biofuels (Biodiesel)

Coatings/Paints/Inks

Crop Protection

Lubricants

Oilfield Drilling and Exploration

Personal Care

Pharmaceuticals

Plastics

Refineries

Rubber

Textile Chemicals

Water Treatment

1.6 Product description

Biofuels: KRISHNA offers an extensive range of Flow improvers / pour point

depressants for Biofuel formulations.

Biofuels are gaining importance in the backdrop of increased fossil fuel prices driven by

reduced supplies and increased concern about environmental pollution. The advantages

of these alternative fuels are their higher content of oxygen leading to a more complete


http://www.cristol.co.in/pro_wt.asp

http://www.cristol.co.in/pro_tc.asp

http://www.cristol.co.in/pro_rubber.asp

http://www.cristol.co.in/pro_refineries.asp

http://www.cristol.co.in/pro_plastics.asp

http://www.cristol.co.in/pro_pharma.asp

http://www.cristol.co.in/pro_pc.asp

http://www.cristol.co.in/pro_oil.asp

http://www.cristol.co.in/pro_oil.asp

http://www.cristol.co.in/pro_lubricants.asp

http://www.cristol.co.in/pro_crop.asp

http://www.cristol.co.in/pro_cpi.asp

http://www.cristol.co.in/pro_biofuels.asp


combustion and consequently to a reduction of emission and the quicker biological

decomposition which is favorable for our environment.

Coatings, paints and Ink: KRISHNA offers a range of additives used in coatings,

paints and ink formulations. These include:

Antioxidants/stabilizer for Paints: Oxidation leads to a number of chemicals

changes in the original composition of the coating. This can eventually result in

undesirable performance and appearance changes in the material. In the paint

industry, antioxidants are used to offset these effects.

Curing agents for Epoxy coatings: It is used in the production of clear, high gloss,

pigmented, color stable, rapid reacting epoxy resin powder coating.

Solvents for paints and inks: CRISTOL-PE is a common volatile organic

compound used as a solvent in ballpoint ink formulations.

Crop Protection: KRISHNA offers a range of crop protection additives to enhance

active ingredient efficiency in agro formulations. These include a variety of

Surfactants i.e. emulsifiers, wetting agents, dispersing agents, suspending aids and

specialty biodegradable solvents.

Agro Surfactants: Surfactants (surface active agents) tend to concentrate on the

surface of a liquid in which they are mixed. Surface tension causes water to bead on

a waxy surface as a result of an energy imbalance, skin effect on the surface.

Surfactants reduce the surface tension of liquids causing droplets to spread resulting

in increased retention and wetting of the leaf surface.

Spray oils: Winter Spray Oil is highly refined, emulsifiable, agricultural spray oil. It

is designed to control a variety of pests on deciduous fruit trees during the dormant

winter period.

Speciality Biodegradable Solvents: CRISTOL CLEAR is highly recommended in

agrochemical formulations where a highly biodegradable, eco-friendly and stable

solvent is desirable. It is also used to solvate a wide variety of solutes. Due to its high

stability, the active in the formulation will not destabilize over a long period of time.



Lubricants: KRISHNA offers a broad range of additives used in the formulation of

high performance automotive & industrial lubricants, greases & metalworking fluids

compounds including:

Antioxidants: The initiation of lubricant degradation is primarily due to thermal and

mechanical energy. Further the propagation of this lubricant degradation is catalyzed

by the presence of metals and oxygen. Antioxidants are primarily used in lubricants

to retard this oxidative degradation and thereby increase their shelf life.

Viscosity Index improvers: viscosity index of oil is crucial when selecting a

lubricant for an application, and is especially critical in extremely hot or cold

climates. Failure to use oil with the proper viscosity index when temperature

extremes are expected may result in poor lubrication and equipment failure.

CRISTOL-VI Improvers are solutions of alkyl methacrylate polymer in solvent

refined hydrocarbon oils that reduce the tendency of oil to change viscosity with

temperature.

Oilfield Drilling and Exploration chemicals: KRISHNA manufactures an established

line of chemicals used in conjunction with the production and processing of crude

oil.

Corrosion Inhibitors: CRISTOL range of corrosion inhibitors is specially

formulated to control corrosion in a wide range of petroleum production systems at a

low cost to the operator. CRISTOL corrosion inhibitors are effective in controlling

and/or eliminating corrosion in most water injection systems.

Demulsifier: CRISTOL range of Demulsifiers for petroleum refining consists of

surface-active materials that promote the separation of water from oil.

Deoilers: CRISTOL range of deoilers enhances bulk oil / water separation for the

purpose of facilitating downstream oil removal. These deoilers are uniform liquids

free from visible impurities and are soluble in water in all proportions. They separate

two liquids having different specific gravities. They also separate and remove a



range of oils from water including hydrocarbon oil and fuel, mineral oils, vegetable

oils, animal fats and oils and fish oil.

Pour Point Depressants: To keep the crude oil flowing in the cold, there is a range

of thermal (heating and insulating), mechanical (pigging) and chemical (additive

treatment) measures. However, the most cost effective method is undoubtedly the

chemical method. This method suggests the use of chemical additives such as Pour

point depressants, which considerably improve the flow properties of crude oil.

Water Treatment: KRISHNA offers a range of coagulants and flocculants used in

the Water Treatment industry.

Personal Care: KRISHNA offers a broad range of ingredients used in personal care /

cosmetic formulations. These include:

Antioxidants for Soap: CRISTOL–OTB largely prevents harmful oxidation and

the catalytic influence of traces of metal. It has all the features expected of a

stabilizer. It is white in color, odorless & non-volatile. It does not change the

properties of the soap. It does not react with the soap or the free alkali in it. Very low

dosages are required.

Biocides/Preservatives: Biocides/preservatives are substances used in cosmetics to

prevent such bacterial and microbial contamination and. rancidity of products. In

fact, preservatives have become almost as ubiquitous as water in cosmetic products.

Pharmaceuticals (Witting Reagents): KRISHNA manufactures phosphite wittig

reagents that find application in the production of pharmaceutical intermediates such

as 3-C-7 ACCA, Cefaclor & formulations like Cefexime.

Plastics: KRISHNA offers an extensive range of plastic additives. On the basis of their

application these can be classified as:



Antioxidants: Krishna offers a range of liquid phosphites, which find application as

antioxidants/ process stabilizers in the manufacture and processing of a wide variety

of polymers such as, PVC, Polyethylene, Nylon etc.

Rubber: KRISHNA offers an extensive range of rubber chemicals. On the basis of their

applications, these can be classified as:

Antioxidants/ Stabilizers: Like everything else, rubber is subject to degradation,

which becomes particularly rapid if it is exposed to oxygen, heat and light.

CRISTOL-TNPP (HR) is the only recommended antioxidant for Radiation

Vulcanized Nitrile Rubber Latex (RVNRL) for improved transparency.

Latex Coagulants: CRISTOL-CPA 700 is recommended as an auxiliary coagulant

along with Acid-salt coagulants during manufacture of Styrene Butadiene Rubber

(SBR) etc. for maximum efficiency.

Products of Krishna Antioxidants Pvt. Ltd. broadly classified into,

1. Phosphites (Additives)

2. Oilfield chemicals

They are mainly dealing in lubricant industry.



Chapter 2: Industry overview

2.1 What are Lubricants2

Lubricating oils are basically made of two components viz., Lube base oil which comes out

from refineries after refining the crude oil and has some inherent lubricating properties like any

other liquid. And the performance enhancing chemical additives which are added to improve

different characteristics of the resultant mixture. When two solid surfaces are rubbed against each

other heat is generated because of friction. If a thin film of any liquid is put between the two

surfaces the friction is reduced and the heat generation also reduces.

The lubricating oils basically perform this simple duty in the most complicated situations, be

it inside engine, in a machine tool, in a gear box or any other relevant machinery application.

Lubricating oil is basically required to perform the following duties: Cooling, Sealing, Cleaning,

Resist corrosion & wear & lubricate. These parameters are enhanced by the addition of chemical

additives. Lubricating oils are broadly categorized in two categories - Automotive & Industrial.

While Engine Oil, gear oil, transmission oil etc constitute automotive oils, turbine oil, bearing oil,

hydraulic oil etc. are examples of industrial oils.

Greases are mixture of a thickening agent like soap with oil. The soap may be metallic soaps

like lithium, calcium etc. Greases are used where lubrication by oil is not possible. For example

wheel bearings, chassis of vehicles.

2.1.1 Industry Overview

These are exciting times for the lube industry in India. Each one of the vast contingent of 22

Multinationals and a total of 80 big & small players are vying for a pie of Rs.5500 Crore market.

Worldwide established brands, some of them albeit new to India, like Shell, Mobil, Caltex, Elf,

Pennzoil are fighting it out with established Indian brands like SERVO & others to establish their 2 Sudeb Gupta & Subimal Mondal, LUBE Industry-‘Fortune’ favors the best



foothold in the 6th largest lubricant market in the World. Compared to the average World

consumption of 35 Million tonnes per annum & Asia-Pacific region consumption of 7.5 million

tones, the Indian lube industry with annual demand of 1 million tonnes is just behind Japan and

China in Asia having a demand growth rate of 4% compared to the World growth rate ranging

between zero to 2%. That is the lube industry in India today.

Prior to 1992 the lube industry in India was controlled by the 4 major Public Sector Oil

companies namely Indian Oil, HPC,BPC & IBP and a handful of private companies like Castrol,

Gulf, Tidewater & others. With the distribution & canalisation of base oil import being controlled

by the Government of India, the PSU Oil Companies controlled 90% of the market share. The

decanalisation of the lube base oil imports in 1993 by the Govt. of India followed by reduction of

import duty on lube base oils from 85% to 30% and gradual scrapping of administered pricing

observed the announcement of almost a new lube venture every month during 1994. Most of the

new entrants formed associations with Indian companies both in the Private & Public sectors. All

these new entrants are targeting for a very small share of the market considering that even 1%

market share means a sale of Rs.55 Crores.

The Indian Oil controlled 54% of the lube market out of total PSU's market share of more

than 90% during 91-92. The Government policy of deregulation followed by entry of multinationals

through JVCs had its effect on the market dominance of PSUs. This has been followed by sudden

entry of lot many players, each one claiming to have some international collaboration and a

`foreign' brand name. This had its initial impact and illusions in the market and the market became

more volatile. During these phases marketing channels of distribution had drifted from petrol

stations to bazaar trade.

2.1.2 Lubricant Industry Segmentation

The lubricant industry can be divided into two major categories i.e., Automotive &

Industrial brand of lubricants. The industrial segment basically comprises of Core Sector industries

like Defence, Railways, State Transport Undertakings, Steel Plants, Coal Mines, Fertilizers, Power

Houses, Chemicals & Heavy Engineering Industries. In the industrial segment, the PSUs could

successfully maintain their stronghold due to the reasons that the requirement is most end use

specific, customer focused, productivity linked & service oriented. Here, price, quality, performance

track record, R&D infrastructure for technology up gradation and product development for end use



specific application & after sales service play the most significant role & FMCG techniques of

promotion and creating illusions takes a back seat.

2.2 Specialty Chemicals3

Specialty chemicals are characterized by low volumes in production but high margins in

profit. Sometimes they are also called “effect chemicals”, meaning that small amounts of substance

cause a large effect, such as the super absorbers which can bind some hundred-fold their own mass

in water.

Uses of specialty chemicals:

Additives for food Diagnostics

Additives for polymers Electronics

Biocides Flavors and fragrances

Catalysts Lubricants

Cellulose derivatives Pigments and varnishes

Cleaners Specialty polymers

Corrosions inhibitors Surfactants

Cosmetics Textile dyes

3 Marketing and Sales in the chemical industry- R. Jacobi



The customers are often chemical industries themselves, in turn using these specialties for their own

formulations or for the synthesis of pharmaceuticals. The suppliers (direct or indirect) of these

specific chemicals depend on the economic cycles of their customers’ industries. There are

industries which react very sensitively to changes in the general environment, named the cyclic

markets, which include the automotive, building and construction, metal, and paper industries.

Good times for these branches result in good profits for the producers of specialties and vice versa.

Non-cyclic markets, which are not so deeply affected by such fluctuations, are food, hygiene,

telecommunication, life sciences, and fertilizer industries.

2.2.1 Innovations plus volumes4

The years 2000-01 and 2001-02 also established that research and technologically superior

products and solutions give this sector an edge. Success in the specialty chemicals industry, unlike

the commodity chemicals industry, is governed by the ability of companies to innovate. Size does

not matter much in the specialty chemicals industry.

And yet, increasingly, the ability to innovate and discover newer chemicals and applications is

available to companies that can generate considerable volumes in core businesses, even while

investing in research into new applications. With the erosion of margins and the shrinkage of

4 BUSINESS LINE, Financial Daily from THE HINDU group of publications Sunday, May 12, 2002



markets for many of the fine chemicals, largely because of increased environmental awareness, the

players in the specialty chemicals industry are forced to rely on both reasonable volumes and

innovation.

It is largely due to these reasons that while the SSI segment continues to dominate in terms of

number of players, its share of the total production in value terms will continue to go down. Further,

among the organised players, multinational manufacturers, whose parents have deep pockets and

huge research and development (R&D) budgets, have an edge over their domestic counterparts

2.2.2 MNC’s captive audience

MNCs in the specialty chemicals sector also enjoy another advantage in the form of a ready,

assured export market — to their parents. Companies such as Clariant India, BASF, Ciba

Specialities, ICI India and Bayer are able to export considerable volumes to their respective parents.

This allows both the subsidiaries and the parents to leverage synergies in the form of lower costs

and higher realisations. The parent's role is also becoming crucial vis-à-vis research support, since

constant innovation has become inevitable even in the Indian context.

Many MNC specialty chemical manufacturers set up operations in India because of the relatively

less stringent environmental regulations here. While these companies were trying to bypass the

extremely tough regulations in their own countries, the increased environmental awareness in India

has meant that a number of traditional textile and leather chemicals had to be dropped from their

product-mixes in India too.

In fact, the erosion of market for many of these chemicals and dyes, after they were banned by the

US, and many European countries has led to the closure of a number of SSI units which became

financially unviable. However, for the bigger domestic companies and MNCs, newer chemicals to

replace the banned ones and emerging areas within the specialty chemicals domain have restored

the balance.

Dyestuffs, basic textile intermediaries and leather chemicals continue to be the main areas for most

companies in the domestic specialty chemicals sector. There has been a certain degree of

consolidation amongst the players. Yet, the dominance of the SSI segment or the unorganised



market is evident from the numbers. Almost 65 per cent of all plants are in the SSI sector. In terms

of global scales of operation, only a dozen would qualify.

2.2.3 Markets in speciality chemicals

The Indian specialty chemical industry, including pharmaceutical and agro-chemical

intermediates, is worth over Rs 15,000 crore, with the organised sector accounting for about 26

per cent of the total market. While most companies in the specialty chemicals business have

been facing an increase in pressure on their margins, due largely to the increase in raw material

costs, most organised players have also been simultaneously working on value-added chemicals

that can potentially contribute more to the bottomline.

The industry can be divided into two categories — traditional specialty chemicals in the textiles

and leather treatment segments and the emerging specialty chemicals in paper treatment,

polymer intermediates, masterbatches, water treatment chemicals and electronic chemicals

segments. The largest section of the industry continues to be in the textile dyes and chemicals

segment.

The second in line, in terms of numbers, is leather chemicals and pigments.``The dyestuffs

segment has traditionally been one of the largest in the industry and continues to be crucial

because of its forward and backward linkages with a number of other industries. Dyes find

application in industries and product segments such as textiles, leather, paper, printing inks and

food processing.

Of this, the textiles and leather processing industries consume over 85 per cent of all dyes

manufactured. However, the dyestuffs segment has been gradually shrinking over the past three

to four years and the future growth potential of this segment at about 1.5-2 per cent is

uninspiring. This slow growth outlook is mainly due to two factors.

The increased environmental awareness, which led to the ban of a number of dyestuffs such as

Azo dyes, and the intense price competition from manufacturers in countries such China,

Indonesia and the Philippines.



Indian scenario: The Indian dyestuff industry is putting through a major restructuring and

consolidation programme. With increased price competition, the emphasis has shifted to product

innovation, increased customer orientation, corporate brand building and environment

friendliness.

However, the bulk of the action in the textile additives and intermediates segment is in the textile

pre-treatment and finishing chemicals area. New products in the pre-treatment, sizing and technical

textiles segments have been gaining market.

These are areas where profitability is governed by constant innovation and new product

development.

It is estimated that a large chunk of the growth would come from such new areas as anti-microbials,

fabric coatings, dirt-repellents, sizing chemicals, flame-retardants, water-repellents, wrinkle-

resistant and spin finishes, fabric softeners and other special application chemicals for new textile

finishes and texture feels are expected to post higher growth during the current fiscal too.

Dyeing and printing and pre-treatment account for an equal share of about 14 per cent each of the

total demand for textile chemicals, followed by the special applications such as finishing at 12 per

cent and optical brightening agents at about 10 per cent.

Clariant India continues to be the largest player in textile chemicals.

2.2.4 The staple areas5

Most specialty chemical companies in India operate in textile dyes and chemicals, leather

dyes and chemicals, paper chemicals, rubber chemicals, masterbatches, pigments, additives,

electronic chemicals, fine chemicals, polymesarates, pharmaceutical intermediates, adhesives

and water treatment chemicals.

Because of increased pressure from the environmental lobby against toxic effluents generated in

the leather treatment business and also from the US, and European countries, which want to

5 BUSINESS LINE, Financial Daily from THE HINDU group of publications Sunday, May 12, 2002



boycott Indian leather , the leather dyes and chemicals business has been affected during the last

three years.

Added to these, the stagnation in the major leather producing states of Tamil Nadu and West

Bengal has led to a steep decline in this sector.

The emerging areas are masterbatches, electronic chemicals, special application paper

chemicals, and water treatment chemicals. Clariant International, with its subsidiaries Clariant

(India), Colour-Chem and BTP (Chennai), is the largest player in the specialty chemicals market

and controls about 45 per cent of the organised segment of the market.

The other MNCs in the market are ICI India, Bayer, BASF and Nalco Chemicals. The major

domestic companies in this sector are Pidilite Industries, Herdillia Chemicals and Sudarshan

Chemicals. But Clariant is the one that merits a close watch. Along with Ciba Speciality, it is

the only completely `specialty chemicals' focussed entity.

Chapter 3: International Business at KAPL

3.1 International Business at KAPL

The spares and hard disk of the computer we operate might have been produced in the

United States of America. The perfume we apply might have been produced in France. The

television we watch might have been produced with the Japanese technology. The shoe we wear

might have been produced in Taiwan, but remarketed by an Italian company.

Many a times we have the experience of browsing Internet and visiting different web sites,

knowing the products and services offered by various companies across the globe. Some of us

might have the experience of even ordering and buying the products through Internet. This

process gives us the opportunity of transacting in the international business arena without

visiting or knowing the various countries and companies across the globe.

We get all these even without visiting or knowing the country of the company where they

are produced. All these activities have become a reality due to the operations and activities of

International business.



Thus, international business is the process of focusing on the resources of the globe and

objectives of the organizations on global business opportunities and threats.

In fact, the term international business was not in existence before two decades. The term

international business has emerged from the term international marketing, which in turn,

emerged from the term 'export marketing'. International Trade to International Marketing:

Originally, the producers used to export their products to the nearby countries and gradually

extended the exports to far-off countries. Gradually, the companies extended the operations

beyond trade.

As mentioned earlier KAPL is in business of speciality chemicals. International market for

KAPL products is divided into certain regions, like Asia-pacific, Middle East & North Africa,

Europe, and USA. Each region is under the control of different manager. He/She has all the

responsibility of doing business in that region. They have to collect all business information in

that region, such as, competitors, manufacturers of lubricants, manufacturers of lubricant

additives, distributors of lubricant additives etc. after collecting sufficient data; they sort it into

specific format and made a database.

With the help of this gathered information they contacted them by mail, introductory letter,

e-mail. Once they replied, then actual process is start like giving product information that they

wanted, product specification, pricing. R and D department made a sample according to their

specifications. International marketing department send this sample to respective customer.

After his approval of acceptance company will send respected quantity mentioned by them.

All these businesses are made on e-mail or telephone. Sometimes, managers are required to

work from home or stay in the office for late, because of time difference between the countries.

6For international business purposes, the internet is an invaluable tool to reach the global

marketplace.

If business already has a website, then we are one step closer to effectively reaching the

international market. The following are some reasons why the internet is your ultimate

international marketing tool:

• No other medium enables us to so quickly and inexpensively communicate with, learn from,

and sell to, a highly targeted, yet global audience.

6 www.exportvirginia.org



• While it does not allow for physical meetings, it facilitates interactive, multi-media and

almost instant communication between people from around the world.

• The Internet facilitates all elements of the traditional marketing mix (4 ‘Ps’).

• We can conduct customer research on the Internet to help modify or develop products based

on the needs and demands of different buyers (i.e. buyers from different countries). With this

knowledge, we can tailor different products to different buyers.

• We can also use the Internet as interface with customers regarding their product and service

enquiries.

• We can use the Internet for international orders, payments and distribution.

3.2 Supply chain at KAPLSupply chain management (SCM) is the management of supply chain. In simple words,

supply chain is fulfilling the customer order in better way. The process of satisfying the

customer order therefore involves the manufacturer, suppliers or vendors, transporters or

distributors, warehouses, retail outlets, and the customers too.

Each stage of the supply chain involves different functions and is interdependent on the

activities of others in the chain. In KAPL’s supply chain, production is triggered by a customer

order; the production schedule dictates the amount of material components or raw materials to

be procured. Transporters and distributors will make sure that the items are delivered to

warehouses and warehouses will finally convey the item to the customer. If any of these stages

breaks down, the entire supply chain network will suffer from bottleneck which will imply that

customer order will not be effectively and timely fulfilled. The impact of this on the

organization is that a dissatisfied customer is created and the organization is unable to achieve

its mission of satisfying the needs of the customer. Supply chain management is, therefore, a

better way to synchronize the activities of the different suppliers or vendors that transact

business with an organization so it could be able to satisfy the needs of its customers. Supply



chain management is based on maximizing the value delivered to the customer by effectively

coordinating the activities of the members of the supply chain network.

With the global village concept of business today, one can envision an organization with

suppliers spread across different countries and perhaps continents. The challenge faced an

organization like KAPL is enormous since planning is more complex, especially concerning

logistical issues regarding the different transportation and distribution zones and international

restrictions that may be in place. Production scheduling constraints and the need to meet

resource and quality specifications, as well as reduce the cost of inventory makes it exceedingly

difficult to manage supply chains. Organizations with extensive supply chain networks need to

be able to coordinate the activities of the different suppliers in order to meet scheduled due dates

either for production planning or for supply of finished goods to customers.

3.3 E- Business at KAPL

E-business is the execution of business transactions by electronic means. It includes,

A communication perspective: The delivery of information, products/services or payment by

electronic means.

A business process perspective: The application of technology towards the automation of

business transactions and workflows.

A service perspective: Enabling cost cutting at the same time as increasing the speed and

quality of service delivery.

An online perspective: The buying and selling of products and information online.

Broadly speaking, the Internet provides a business with a host of faster and more flexible processes

that can dramatically ease communication and transactions across geographical boundaries,

uncovering opportunities to leverage operations in new and innovative ways.7

Operations management for e- business7 The building blocks of an operation strategy- Robert Lawson & Nicola Burgess



Operations management can be broadly defined as,8“The management of the internal and external systems, resources and technologies that

create and deliver the firm’s primary products and/or services.”

This definition expands the operations management concept beyond just internal production

or manufacturing. Here, it will encompass other activities such as purchasing, distribution,

product and process design etc. and this is what exactly done in KAPL’s Andheri

department, because all manufacturing or production activities done in Chiplun and Vasai

factory and rest all operational activities handled by this department. Further, in an e-

business operational setting, there will also be external managerial responsibilities at a

supply network level, covering the interconnections between external firms.

E-business can revolutionize many elements of operations management due to its

effective time, resource and cost reduction. This is mainly achieved through improved

communication and dissemination of economically valuable data and information.

Improving visibility and integration of supply chains and effectively replacing the need for

inventory with real-time information

An example of e-business done here is Alibaba.com; they promote their business

here including all product information, services, and contact details. Once they register here

they can contact all potential customers that are already registered with alibaba.com; also

others can see the company information.

Such operational improvements provide opportunities for e-business to further

increase economic efficiencies by matching buyers and sellers and facilitating the exchange

of information and goods and services – a move closer to the perfect market. In addition,

some of the time constraints of trading are reduced.

8 The building blocks of an operation strategy- Robert Lawson & Nicola Burgess



An example of specification sheet from customer

Sr. No. Parameters Unit Specification limit

1 Color APHA 75 max

2 Specific Gravity at 250C - 0.980-0.992

3 Refractive Index at 250C - 1.5250-1.5280

4 Acid Value mg KOH/gm 0.25 max

5 Free NP content Wt % 4.0 max

6 TIPA content Wt % 0.5-0.99 max

7 Phosphorous content Wt % 4.1-4.5

These are the specification given by the SABIC Company, a giant in Saudi Arabia. KAPL made the

product according to these specification and followings are the results for 60 observations. All these

tests are done in R and D unit of KAPL in Dombivli. All these tests shows that product lies within

the specification.



KAPL’s product performance (TNPP)

Graph 1: Color

Colour (APHA)

0.0

15.0

30.0

45.0

60.0

75.0

Colour (APHA)

Graph 2: Specific Gravity at 250C

S.G. at 25 C.

0.9800

0.9830

0.9860

0.9890

0.9920

S.G. at 25 C.

Graph 3: Refractive Index at 250C



R.I. 25 C.

1.5250

1.5255

1.5260

1.5265

1.5270

1.5275

1.5280

CHARGE NO.

R.I R.I. 25 C.

Graph 4: Acid Value

0.000

0.063

0.125

0.188

0.250

Series1

Graph 5: Free NP content

Free NP (%)

0.00

1.00

2.00

3.00

4.00

Free NP (%)



Graph 6: TIPA content

TIPA (%)

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

TIPA (%)

Graph 7: Phosphorous content

Phophorous Content

4.10

4.20

4.30

4.40

4.50

Phophorous Content

3.4 ‘5S’ in KAPL

5S concept is mainly emphasized on improving processes, reducing wastes, saving time,

providing safe and healthy environment.

In daily office routine work, persons waste considerable amount of time in locating

file, searching for specific documents and similarly search for specific document in computer.

All this is due to lack of proper documentation and files management system.

These problems were solved, by applying 5S principles in the KAPL. 5S not only solve

problems, but also increase productivity and efficiency of employees. These are the steps that

they are followed in its implementation:

1. Items of not common use (Scissor, tape, highlighter, pin remover etc.) must be kept in

separate drawers.



2. Documents for dispatch should be kept at a distance from your working table.

3. Folders and files, which are not being used, may be placed at their appropriate shelf.

4. Common stationery and common use items (Tissue, rubber) must be kept within hand

easy approach. Also try to keep minimum amount of stationery.

5. Computer's mouse and keyboard should be placed in front of you with easy use of

hand and fingers.

6. Working chair should be revolving so that you can easily move around and excess

things.

7. Place telephone towards right hand side along with phone directory and note pad for

writing any important messages. Also highlight special and commonly used phone

numbers for easy access.

8. Clock and calendar may be shown at your PC desktop.

9. Each drawer of your table should be clearly marked with the title of drawer. For

example you can mark drawers as letters, notes, memorandum etc.

10. Keep the background of your computer display simple and make shortcuts of

commonly used folders.

11. Keep the shortcuts of commonly used Softwares at desktop.

12. Keep files and documents at their respective locations in your PC and don't keep

them at desktop. Also give proper names to each file, so that you can search in case you

forgot its location. File name can also include its date of creation.

13. Delete all those files from computer those are not useful. Also you can make

database of the files on some recording media.

14. Add websites in cookies, those are being used regularly, to save time.

15. Try to categories stationery items according to their use and arrange them

accordingly. Items that are being used frequently need to be placed first and then place

items according to their usage after that.

There are number of benefits that can be achieved by 5S implementation, it improves

moral of employees and it provides positive impression to customers. 5S helps in

reducing wastes and better quality products and products are produced with shorter lead

times and ultimately organization gets renowned in the market.



An example of introductory letter







REACH- statement



Oil-field Leaflet



Chapter 4: Research Methodology

4.1 Research methodologyLack of knowledge and unfamiliarity with foreign markets usually heighten the risks for a

company wanting to do business in a foreign land. The problem is further complicated by

the fact that international marketing research is more difficult and more complex than

domestic research.

According to the American Marketing Association, marketing research involves the

“systematic gathering, recording, and analyzing of data about problems relating to the

marketing of goods and services.”

This definition provides a useful description of the nature of marketing research, but it fails

to include pre research analysis, which is an important aspect of the research process. Before

data collection, careful planning is required to specify both the kind of information needed

and the purpose of such information. Without pre research activities, there is a great danger

that critical information may not be obtained and that what is obtained may turn out to be

irrelevant or unsuitable.

4.1.1 Research design

Research Design refers to "framework or plan for a study that guides the collection and

analysis of data". A typical research design of a company basically tries to resolve the following

issues:

a) Determining Data Collection Design

b) Determining Data Methods

c) Determining Data Sources

d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan



Research design:

Exploratory Research, Conclusive Research

Sample Size: 50

Sampling plan: Simple random sampling

Area of study: Worldwide

Duration: 5 weeks

Data collection:

Primary data through Questionnaire

Secondary data:

A very basic method of finding business information is to begin with a public library

or a university library. A library with a reasonable collection should contain standard

reference guides, commercial and industrial directories, financial reference manuals,

and other materials containing pertinent business information.

One useful source of information is the World Trade Centers Association (WTCA)

which has more than 300 World Trade centers in eighty-nine countries. Established

as a nonprofit organization in 1970, the WTCA promotes international business

relationships through a network of members worldwide. These centers offer

referrals, contacts, and information for businesses.

Internet is invaluable tool for data collection. This can give all sorts of business

information including name of company, their business, contact details etc. at almost

no cost.



4.2 Data analysis

Customer Satisfaction Questionnaire (Additives purchaser)

1. On a scale of 1 to 5 where 1 represents "Excellent" and 5 represents "Poor", how

would you rate your level of overall satisfaction with Company KAPL as a

supplier/manufacturer?

1 2 3 4 5



2. How likely are you to repurchase products and services from Company KAPL? Would

you say the chances are …

Excellent

Very Good

Good

Fair

Poor



3. How likely are you to recommend Company KAPL to a Business associates? Would

you say the chances are …

Excellent

Very Good

Good

Fair

Poor



4. On a scale of 1 to 5 where 1 represents "Excellent" and 5 represents "Poor," how

would you rate your level of satisfaction with Company KAPL in regards to price?

1 2 3 4 5



5. On a scale of 1 to 5 where 1 represents "Excellent" and 5 represents "Poor," how

would you rate your level of satisfaction with Company KAPL in regards to value?

1 2 3 4 5



6. How would you rate the speed at which your telephone call was handled?

Excellent Poor

1 2 3 4 5



7. How would you rate the speed at which your email or internet request was handled?

Excellent Poor

1 2 3 4 5

8. What is your impression of our advertisements? (You can tick more than one option)

____ Funny

____ Informative 46

____ Short 26



____ Long 16

____ Interesting 52

9. Please rate these specific attributes related to the performance of the Consumer Help

Center representative(s).

Excellent Poor

a. Knowledge of consumer information. 1 2 3 4 5

b. Ability to provide you clear information on your inquiry or

transfer you to the appropriate contact efficiently.

1 2 3 4 5

c. Courtesy and professionalism displayed towards you. 1 2 3 4 5



10. How would you rate the overall quality of your relationship with KAPL, considering all

of your experiences with them? Would you say it is …

Excellent

Very Good

Good

Fair

Poor

4.2.1 Chi-Square Test

Attributes: Level of satisfaction while doing business with KAPL

Degrees of freedom:

Degrees of freedom= Number of variables-1

Degrees of freedom = 5-1 = 1



Testing of Hypotheses:

Null Hypotheses, H0: Customers finds difficulty while doing business with KAPL

Alternate hypotheses, H1: Customers are satisfied while doing business with KAPL

Testing of Hypotheses using Chi-Square Test:

O E O-E (O-E)2 (O-E)2 /E

21 10 11 121 12.1

14 10 04 16 1.6

09 10 -01 01 0.1

04 10 -06 36 3.6

02 10 -08 64 6.4

Σ (O-E)2 /E = 23.8

Therefore, χ2 calculated = 23.8

χ2 1, 0.05 = 9.488

Since, χ2 calculated > χ2 1, 0.05. Therefore, the null hypothesis is rejected.

This implies that, customers are satisfied while doing business with KAPL, thus

accepting the alternate hypothesis H1.

Chapter 5: Conclusion

5.1 Limitations



Smaller sample size: The sample size was taken as 50 but the number of customers

doing business with KAPL is massive. Due to which, the chances of error increases.

Due to paid nature of some websites (Directories), there is limitation to collect data.

Project emphasizes on only KAPL, there would have been better analysis if two or

more companies would have been compared.

5.2 Conclusion

With the help of WTC library, we able to collect around 500 customer database, with

their all details.

Remaining database we prepared with the help of directories and internet.

After contacting most of those with mail, emails; we got around 50 replies till date.

Customer satisfaction survey which is done with existing customers reveals that they

are happy and satisfied with KAPL’s products and service.

According to performance wise other international brands suppressed the brand

KAPL.

But with respect to affordability, quality, and availability of products, KAPL is

competitive enough to well known brands in the industry.

5.3 Learning Experiences from the project

It was great experience to work with Krishna Antioxidants Pvt. Ltd. for about 2 months.

I learnt a lot, not only in the area of project but also about the organization culture.



During project, they first trained me about the product profile of the company. They

also trained about the how to differentiate and deal with the manufacturer,

distributer, competitor.

During the data collection for the project I realize that, customer database for

international market is not easy as domestic market, and there is communication

problem as well.

Database was prepared in such a way that it is easy to handle with respect to reduced

time and effort.

Customer satisfaction survey is a great experience because there is actual

communication between me and foreign customers.

To deal with European customer sometime managers have language and time

problem, and to overcome this manager have to learn few European languages and

sometimes work for late night. This clearly indicates that international business is far

different from domestic business.

International marketing is closely connected with the R and D, manufacturing and

purchase department.

References

1. Jacobi R., Marketing and sales in the chemical industry, Wiley-VCH publication, Wenham,

2002



2. BUSINESS LINE, Financial Daily from THE HINDU group of publications Sunday, May

12, 2002

3. The TQM magazine, international bi-monthly for Total Quality Management, volume 15,

number 3, 2003

4. Kothari C.R, Research Methodology methods and techniques, second revised edition, New

age (I) publishers, 2004

5. Gupta Sudeb and Mondal Subimal, Lube industry-FORTUNE favors the best

6. www.cristol.co.in

7. www.exportvirginia.org


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